Portfolio Review Second Quarter 2013

Transamerica CI Balanced Portfolio

Portfolio Review – Second Quarter 2013 as at June 30, 2013Transamerica CI Balanced Portfolio

Underlying Fund Allocations

Aegon Capital Management Canadian Bond Pool 19.7%Signature Global Bond Fund 7.4%Signature Select Canadian Corporate Class 5.9%Cambridge Canadian Equity Corporate Class 5.3%CI International Value Corporate Class 5.2%CI Canadian Investment Corporate Class 5.1%Signature International Corporate Class 5.1%Signature Diversified Yield II Fund 4.9%CI American Value Corporate Class 4.8%Synergy Canadian Corporate Class 4.5%CI American Managers Corporate Class 4.3%Signature High Income Fund 4.3%Cambridge Income Corporate Class 4.0%Harbour Corporate Class 3.8%CI American Small Companies Fund 3.3%Cambridge Global Equity Corporate Class 3.2%Cambridge American Equity Corporate Class 3.2%Synergy American Corporate Class 3.2%Signature Emerging Markets Corporate Class 1.9%Cash 1.0%

Top Ten Holdings

Canada Gov’t 4% 01Jun41 1.6%U.S. Treasury Note 1.625% 15Nov21 1.0%Toronto-Dominion Bank 0.9%Canada Gov’t 2.75% 01Jun22 0.7%Canadian Imperial Bank of Commerce 0.7%U.S. Treasury Note 3.125% 15May21 0.7%CIBC 9.976% FRN 30Jun08 0.7%Royal Bank of Canada 0.7%Bank of Nova Scotia 0.7%Canadian Western Bank 3.463% 17Dec24 0.7%

Portfolio Managers’ Economic Overview

U.S. economic data remained mixed during the second quarter, but improving jobs and housing numbers prompted the Federal Reserve to indicate that it was considering plans to reduce its massive bond and mortgage-buying program. This surprised investors and led to a sell-off in the bond market, with yields on U.S. Treasuries rising to their highest levels in more than a year. High-yield and investment-grade corporate bonds and real estate investment trusts also pulled back during the quarter.

Canadian equities as reflected by the S&P/TSX Composite Index stumbled early in the quarter on weak economic data, made a strong recovery with other global markets through May but dropped sharply again in June, finishing the second quarter with a 4.1% loss. Signs of economic weakness overseas, particularly slower growth in China, led to a drop in prices for commodities including oil, copper and particularly gold, which weighed on the resource-heavy Canadian market. Canadian equities were also dragged down as nervous investors considered the consequences of higher interest rates in the U.S. Meanwhile, the U.S. equity market experienced a pullback through the month of June as companies reported weaker corporate earnings and investors mulled the implications of the U.S. Fed tapering its current quantitative easing program. Nevertheless, the S&P 500 Index finished the period with a 6.5% gain in Canadian dollar terms.

In Europe, most stock markets finished the period with modest gains, benefiting from the expectation that the European Central Bank would cut interest rates to spur the region’s struggling economy. Japan’s Nikkei Index soared early in the quarter after the Bank of Japan announced a US$1.4 trillion stimulus plan designed to increase inflation. The Nikkei finished the quarter up about 8%. Other Asian markets, including those in Hong Kong, South Korea and Singapore, declined in the face of stalling Chinese growth data.

Portfolio Review – Second Quarter 2013 as at June 30, 2013Transamerica CI Balanced Portfolio

0 5 10 15 20 25 30 35 40

37.7%31.3%14.5%3.6%3.1%2.6%2.3%1.9%1.5%1.4%

37, 7 %31,3 %14,5 %3,6 %3,1 %2,6 %2,3 %1,9 %1,5 %1,4 %

— Canada ▲— U.S. ▼— Cash & Others ▲— Emerging markets ▼— U.K. ▼— Japan ▲— Germany ▲— Switzerland ▼— France ▲— Australia ▼

— Canada ▲ — États-Unis ▼ — Trésorerie et autres ▲— Marchés émergents ▼— Royaume-Uni ▼— Japon ▲— Allemagne ▲— Suisse ▼— France ▲— Australie ▼

▲ ▼ ■

Geographic Regions

0 5 10 15 20 25 30

25.7%13.6%12.6%

9.9%9.7%9.3%9.1%5.5%2.7%1.8%0.1%

25,7 %13,6 %12,6 %

9,9 %9,7 %9,3 %9,1 %5,5 %2,7 %1,8 %0,1 %

— Financial services ▲— Energy ▼— Industrials ▲— Information technology ▼ — Health care ▲— Consumer staples ▼— Consumer discretionary ▲— Materials ▼— Utilities ▲ — Telecommunications ▼— Other ■

— Services financiers ▲ — Énergie ▼— Industries ▲— Technologies de l’information ▼ — Soins de santé ▲— Biens de consommation de base ▼— Biens de consommation discrétionnaire ▲— Matières premières ▼— Services publics ▲ — Télécommunications ▼— Autres ■

▲ ▼ ■

Equity Industry Sector

0 5 10 15 20 25 30

25.9%21.2%16.4%10.1%

9.9%7.9%4.2%2.7%1.7%

25,9 %21,2 %16,4 %10,1 %

9,9 %7,9 %4,2 %2,7 %1,7 %

— U.S. equity ▼ — Canadian bond ▲ — Canadian equity ▼— European equity ▲— Foreign bond ▼— Cash ▲— Asian equity ▼— Emerging markets equity ▼— Other equity ▲

— Actions américaines ▼ — Obligations canadiennes ▲ — Actions canadiennes ▼— Actions européennes ▲— Obligations étrangères ▼— Trésorerie ▲— Actions asiatiques ▼— Actions de marchés émergents ▼— Autres actions ▲

▲ ▼ ■

Asset Class

0 10 20 30 40 50 60 70 80

75.7%20.1%

4.2%

75,7 %20,1 %

4,2 %

— Large-cap ▼— Mid-cap ▲ — Small-cap ▲

— Grande capitlisation ▼— Moyenne capitalisation ▲ — Petite capitalisation ▲

▲ ▼ ■

Equity Market Cap

Asset Allocation Overview and ActivityDifferent types of investments will respond differently to the markets, reinforcing the importance of a multi-level diversification strategy. A balanced asset mix ensures that investors are not dependent on any one asset class or security type to provide returns.

This report is designed to provide you with an up-to-date portfolio overview of the Transamerica CI Balanced Portfolio, including the allocations across asset class, geographic region, equity sector and market capitalization. The arrows indicate whether the allocation for each category has increased or decreased since the previous quarter-end.

3 Months 6 Months 1 Year 3 Years Since Inception Inception Date†

-0.9% 5.2% 10.4% 6.3% 5.0% October 2009

Portfolio Performance Transamerica CI Portfolios are available as Guaranteed Investment Portfolios within select Transamerica segregated funds contracts and as Managed Portfolio Index Interest Options within select Transamerica Universal Life Products.

Segregated Fund Net Returns below are for the Transamerica Guaranteed Investment Funds (TGIF) product. Please refer to www.transamerica.ca for the returns on other products.

The performance of the five Transamerica CI GIPs reflects fees that were not collected from January 1, 2013 to April 26, 2013. These fees were collected on May 1, 2013, therefore the three and six-month net returns provided below are less than they would otherwise have been.

†On September 21, 2012, the Transamerica TOP GIPs began investing in a new portfolio managed by CI Investments. The Transamerica TOP GIPs are now referred to as Transamerica CI GIPs.

Portfolio Review – Second Quarter 2013 as at June 30, 2013Transamerica CI Balanced Portfolio

The portfolio declined 0.9% during the quarter and its benchmark (25% S&P/TSX Composite Index, 40% DEX Universe Bond Index, 35% MSCI World Index, C$), declined 0.5 %.

Our overweight allocation to the U.S. equity market and strong performance from the Canadian equity managers made the largest contribution to performance. An underweight exposure to government bonds and an allocation to a diversified basket of income-generating equities also added value.

During the quarter, government bonds suffered losses following Federal Reserve Chairman Ben Bernanke’s comments that economic data has improved to a point where the U.S. central bank could start to wind down its bond-buying program later this year. While an improving economy is welcome news, the withdrawal of stimulus was considered unfavourable by investors. Income-producing equities, such as real estate investment trusts and utilities, also declined, as an increase in long-term bond yields made their payouts less attractive.

The U.S. equity market continued to strengthen, significantly outperforming Canada, which was held back by weakness in the resource sectors. Gold prices suffered a sharp decline after the metal lost some of its appeal as a hedge against inflation and deteriorating currencies. International equity markets were boosted by strength in Japan, which started a large stimulus program earlier this year in an effort to end two decades of economic stagnation. Emerging markets suffered losses amid indications of slowing economic growth and due to a sell-off in China following a sudden liquidity crunch. The U.S. dollar strengthened against the Canadian dollar due to improving economic fundamentals south of the border and a retreat in commodity prices after indications of slowing economic growth in China.

In the portfolio’s income section, Cambridge Income Corporate Class and Signature Diversified Yield II Fund made the biggest contributions, benefiting from their diversified exposure to income-generating equities. Aegon Canadian

Bond Pool and Signature Global Bond Fund outperformed the benchmark but were slight detractors in absolute terms due to their exposure to government bonds. We currently favour high-quality dividend-paying companies to bonds in the portfolio.

The portfolio’s interest rate risk is reduced through exposure to corporate bonds with shorter durations and higher yields, as well as to alternative sources of income such as high-yielding equities that have lower sensitivity to interest rate movements.

A large portion of the income section’s foreign currency exposure is strategically hedged back to the Canadian dollar, dampening volatility from currency movements. However, depending on the level of exchange rates, we will adjust the exposure to foreign currencies to benefit from changing market conditions.

We are continuing to favour corporate bonds, global bonds and currencies, while maintaining underweight allocations to Canadian government bonds. Having a diversified and flexible framework allows us to take advantage of changes in valuations in the market and continue providing steady income returns with low volatility. We expect to achieve modest growth and inflation protection through our allocation to high-quality dividend-paying equities.

In the equity section, strong performance from the Canadian equity managers made the biggest contribution to performance. Our allocation to emerging markets detracted from performance, after indications of slowing economic growth in China contributed to a sell-off.

The sector allocation of the portfolio’s overall equity portion is more diversified than that of the Canadian economy and the S&P/TSX Composite Index, which has over 75% of its value concentrated in three sectors: energy, materials and financials. We continue to focus on company fundamentals and valuations to add value and avoid undue concentration in any one sector.

Portfolio Commentary

Portfolio Review – Second Quarter 2013 as at June 30, 2013Transamerica CI Balanced Portfolio

From a regional perspective, the equity portion continued to have an overweight allocation to the U.S. and an underweight position in Canada, with a neutral position in international equities. U.S. equities are supported by a diverse economy, with large exposure to global markets and strong representation in all major industrial sectors, making it an attractive asset class on a risk-adjusted basis.

In the Canadian equity portion, Cambridge Canadian Equity Corporate Class made the biggest contribution to performance, significantly outperforming the benchmark due to strong stock selection in the energy and information technology sectors, as well as an underweight position in materials. Overall, the Canadian equity section had underweight exposure to resources and financials, and overweight allocations to information technology, health care and the consumer sectors.

Among our U.S. equity funds, CI American Value Corporate Class was the best performer, benefiting from strong stock selection in health care and information technology. Overall, the U.S. portion favoured areas of the market that are tied to economic growth, such as the industrials sector, while holding underweight positions in defensive sectors, such as consumer staples and utilities.

In the international equity portion, Signature International Corporate Class was the largest detractor, due to stock selection in financials and industrials. The international equity component had overweight allocations to information technology and energy, a significant cash holding, and underweight positions in financials and utilities. Geographically, it had an overweight position in emerging markets, mainly in Asia and Latin America, and underweight allocations to Australia, France, the U.K. and the peripheral countries of Europe.

Our long-term outlook remains favourable for emerging markets, particularly China, where we expect to see businesses continuing to benefit from rising personal wealth and domestic consumption. Historically, emerging market equities have offered higher returns at the expense of additional volatility. While we expect this trade-off to continue, we believe the long-term rewards justify the risks.

Alfred Lam, CFA, Vice-President and Portfolio Manager

Yoonjai Shin, CFA, Director

Marchello Holditch, Senior Analyst

Lewis Harkes, CFA, Senior Analyst

Andrew Ashworth, Analyst

Portfolio Review – Second Quarter 2013 as at June 30, 2013

Aegon Capital Management (ACM) oversees more than $8 billion in institutional, third party and asset liability matching investments. ACM is backed by the strength of Aegon Asset Management which manages more than US$300 billion in assets. ACM’s focus is to provide exceptional income and capital preservation solutions for our clients.

Altrinsic Global Advisors, LLC follows a fundamental value approach in which the team seeks out high-quality undervalued companies worldwide. Founded by John Hock and associates, Altrinsic is based in Greenwich, Connecticut, and manages over US$13 billion in assets.

Cambridge Global Asset Management manages over $7 billion in assets and is led by Chief Investment Officer Alan Radlo and Portfolio Managers Robert Swanson and Brandon Snow. Combined, they have over 65 years of investment experience and have managed a number of multi-billion-dollar mutual fund portfolios. Cambridge Global Asset Management is a division of CI Investments and has offices in Boston and Toronto.

Epoch Investment Partners, Inc. is a New York-based investment management firm founded by Wall Street veteran William Priest and associates. Epoch uses a unique value-based approach that focuses on companies with superior shareholder yield. It manages over US$24 billion.

Harbour Advisors, a division of CI Investments, is led by Portfolio Managers Gerry Coleman and Stephen Jenkins. Harbour’s approach entails buying high-quality businesses at a sensible price, and following a patient, long-term outlook. Mr. Coleman’s expertise has been recognized by his selection as Fund Manager of the Year in 2008 and 2001. Harbour manages over $13 billion.

Signature Global Asset Management advantage is its approach in which asset class and sector specialists combine their research to develop a comprehensive picture of a company and its securities. The team of 32 investment professionals is led by Chief Investment Officer Eric Bushell, who was named Morningstar Fund Manager of the Decade in 2010. Signature manages over $40 billion.

Picton Mahoney Asset Management is a portfolio management firm led by David Picton and Michael Mahoney. The use of quantitative analysis is the foundation of their approach. Picton Mahoney maintains a disciplined focus on fundamental change, coupled with strong risk controls and portfolio construction techniques. The firm manages about $7 billion.

Tetrem Capital Management is an employee-owned investment management firm founded by Chief Investment Officer Daniel Bubis. It is based in Winnipeg and has an office in Boston. Tetrem uses a disciplined investment approach to invest in undervalued Canadian and U.S. companies. The firm manages about $5 billion.

Portfolio Management Teams

Transamerica CI Portfolios

The Transmerica CI Portfolios are managed by CI Investments Inc. on behalf of Transamerica Life Canada.

Strength and experience

Transamerica Life Canada is a leading life insurance company

in Canada. Through a number of distribution channels, resulting

in a national network of thousands of independent advisors,

Transamerica provides a full spectrum of individual life insurance

and protection products, designed to help Canadians take

responsibility for their financial future. Transamerica Life Canada

is an Aegon company.

Aegon Capital Management (ACM) oversees more than $8 billion

in institutional, third party and asset liability matching investments.

ACM is backed by the strength of Aegon Asset Management which

manages more than US$300 billion in assets. ACM’s focus is to

provide exceptional income and capital preservation solutions for

its clients.

CI Investments has been managing money for over four decades

and today is one of Canada’s largest investment fund companies.

CI manages approximately $80 billion on behalf of two million

Canadian investors. CI provides the industry’s widest selection

of investment funds and leading portfolio managers on a variety

of platforms, including mutual and segregated funds, managed

solutions and alternative investments.

CI is a subsidiary of CI Financial Corp. (TSX: CIX), an independent,

Canadian-owned wealth management firm with approximately

$106 billion in assets as at June 30, 2013.

1307-1198_E (07/13)

For more information on Transamerica CI Portfolios, please contact your advisor or visit www.transamericaciportfolios.com.

All commentaries are published by CI Investments Inc., CI Investments Inc. is the Manager of all the funds described herein, other than Aegon Capital Management Canadian Bond Pool which is managed by Aegon Capital Management. The commentaries are provided as a general source of information and should not be considered personal investment advice or an offer or solicitation to buy or sell securities. Every effort has been made to ensure that the material contained in the commentaries is accurate at the time of publication. However, CI Investments Inc. cannot guarantee their accuracy or completeness and accepts no responsibility for any loss arising from any use of or reliance on the information contained herein.

SUBJECT TO ANY APPLICABLE DEATH AND MATURITY GUARANTEE, ANY PART OF THE PREMIUM OR OTHER AMOUNT THAT IS ALLOCATED TO A SEGREGATED FUND IS INVESTED AT THE RISK OF THE CONTRACT HOLDERS AND MAY INCREASE OR DECREASE IN VALUE ACCORDING TO FLUCTUATIONS IN THE MARKET VALUE OF THE ASSETS OF THE SEGREGATED FUND. If you wish to obtain a copy of the simplified prospectus and/or financial statements of any of the underlying funds, please contact the appropriate mutual fund company. Transamerica Life Canada is the issuer and guarantor of the Transamerica CI Guaranteed Investment Portfolio contract.

®CI Investments, the CI Investments design, Synergy Mutual Funds, Harbour Advisors, Harbour Funds, Cambridge and American Managers are registered trademarks of CI Investments Inc. ™Signature Funds and Signature Global Asset Managements are trademarks of CI Investments Inc. Cambridge Global Asset Management is the business name of CI Global Invesments Inc. Certain portfolio managers of Cambridge Global Asset Management are registered with CI Investments Inc.

®Aegon and the Aegon logo are registered trademarks of Aegon N.V. Canada ULC and its affiliated companies are licensed to use such marks.

®Transamerica and the pyramid design are registered trademarks of Transamerica Corporation. Transamerica Life Canada is licensed to use such marks. First published July 2013.

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